Key Takeaways
- The High Court has authorized the committee to investigate the legitimacy of Cryptocurrency in Pakistan.
- The Committee is required to report the outcome to the country's Ministry of Finance.
- If the outcome shows that the digital asset is legal, the committee will provide a proposed framework for it in the country.
- The State Bank of Pakistan banned companies under its control that are involved in cryptocurrency.
- The Country's federal government made a law in 2019 that requires all electronic money companies to get authorization to offer cryptocurrency assets under orders from the Financial action task force.
The Sindh High Court, the country's highest judicial body, has given the committee permission to look into whether cryptocurrency is lawful under the country's Constitution. The Court further orders the organization to provide the Ministry of Finance with a copy of the final report.
They'll make any required alterations to the recommended framework if the investigation reveals that virtual currency is allowed in the nation. If the investigation finds that virtual currency is allowed in the country, they'll offer advice on how that country's digital asset framework should be.
Deputy Governor of Pakistan's State Bank (SBP) would be in charge of the committee, which will also include members of the country's finance ministry, the IT department, the country's telecommunications department, and the country's Security and Exchange Commission.
A ruling on whether or not the government would monitor cryptocurrency activity in the country was presented by the Court as a pragmatic response to potential black market firms operating in the country outside of the Nation's authority jurisdiction, rather than a decision.
The price of cryptocurrencies has risen sharply in recent weeks, with the most popular coin, Bitcoin, recently hitting a record high of $66,000.
As a result of the widespread use of digital money, the government expects to collect a significant amount of income through taxes.
Because of the rising value, the industry continues to draw more investors and stands out among other investment options.
While digital money is legal in Pakistan, the State Bank of Pakistan's present statute prohibits the enterprises it regulates from dealing in virtual currency.
A tougher rule was passed by the Federal Government in 2019 for the digital asset industry, requiring all electronic money enterprises to seek permission from the Financial action task force before offering cryptocurrency services.
Think that cryptocurrencies will be allowed in Pakistan when the committee's decision is made?
